CalculateRealEstateROI

ROI Metrics

Return on Investment (ROI)

Total return generated by an investment expressed as a percentage of the cash invested.

Reviewed by Keiron Brown, Founder & Editor, CalculateRealEstateROI · Educational estimates only — not investment, financial, tax, or legal advice

Plain-English explanation

Did you make more than you put in, and by how much? ROI rolls cash flow, appreciation, and principal paydown into one number.

Formula

ROI = (Net Profit / Cash Invested) × 100

Examples

  • $20k profit on $100k cash invested = 20% ROI.
  • 5-year cumulative ROI of 60% ≈ 12% annualized.

Common mistakes

  • Comparing ROI without specifying the time period.
  • Ignoring transaction costs and taxes.

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